Where the power of sale, whether express or statutory1, provides that the surplus proceeds are to be held in trust for the mortgagor2, the mortgagee becomes a trustee of the surplus proceeds in his hands3; otherwise he becomes a trustee only on proof that there is a surplus in his hands4. The mortgagee is not a trustee of the surplus for the mortgagor or subsequent incumbrancers if before the sale their rights had become statute-barred5
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